The CEFC has committed AUD125 million (US$93.13 million) on behalf of the Australian Government to help finance the development of grid infrastructure critical to the delivery of the Snowy 2.0 pumped hydro project. In its first major grid infrastructure investment, the CEFC will fund TransGrid Services to increase the amount of reliable and secure electricity to the National Energy Market (NEM).
The CEFC corporate debt facility with TransGrid Services is part of a complex project to connect Snowy 2.0 to the NEM. TransGrid Services will draw on the CEFC finance to design, construct, operate and maintain a new 330kV switching station and associated transmission lines as part of its agreement with Snowy Hydro Limited to provide connection services for 30 years.
Snowy 2.0 will offer an important economic stimulus, including the creation of about 4,000 jobs during construction. It will also support new Renewable Energy Zones in southern NSW, including 1,900 MW of renewables projects in construction or under development, by enhancing security and reliability of supply via Snowy 2.0.
The AEMO 2020 Integrated System Plan identified Snowy 2.0 as a critical project for NSW and the NEM, with the potential to unlock the value of both existing and new renewable energy while delivering reliable energy to consumers.
The Australian Government has introduced legislation to create an AUD1 billion (US$742 million) Grid Reliability Fund (GRF) to be administered by the CEFC. The GRF will support investment in new energy generation, storage, and transmission infrastructure. The proposed AUD1 billion (US$742 million) for GRF projects is in addition to the existing CEFC AUD10 billion (US$7.42 billion) capital allocation.
